Help to Save Withdrawal / Bonus

Nineteen93

My wife and I have both been using the HMRC Help to Save accounts. For the last two years we've both saved £50 each in our accounts. The accounts both currently have £1200 We are due to recieve our first bonuses (£600) in the next week.

My question is... If we were both to withdraw the £1200 we have saved so far, and then continued to save £50 a month for the next two years (years 3 and 4 of the help to save account) would it affect the final bonus?

Unfortunately, neither of us can quite work out the answer. Some of what we have read seems to indicate that only what is saved in years 3 and 4 counts towards the final bonus but something else suggests that it is the difference between what was saved in total in years 1 and 2, and years 3 and 4.

Withdrawing the money would help with some stuff at the moment but we wouldn't want to do that and later regret it if it affects the final bonus. Any clarification, help or advice would be greatly appreciated. 

Thank you in advance! 

Chrisv

Nineteen93 said:

...My question is... If we were both to withdraw the £1200 we have saved so far, and then continued to save £50 a month for the next two years (years 3 and 4 of the help to save account) would it affect the final bonus?...

https://www.gov.uk/get-help-savings-low-income/what-youll-get

Withdrawing money could mean you are not able to earn a final bonus - depending on how much you withdraw and when.

If you withdraw the full £1200 now, and then continued to save £50 a month for the next two years, your highest balance would not increase (£1200) and you would not earn a final bonus.

Nineteen93

Thanks a lot for that! That makes perfect sense 😊